An analysis of cooperative mechanism and complementarities among China, Japan and south Korea

The theory of transaction costs and "Interdependence theory" are the regional cooperative causation. Based on an analysis of cooperative mechanism and complementary among China, Japan, and South Korea, examines cooperative projects and simulating results affected China's economy. The establishing the model. of, trade flows predicts that cooperation is beneficial to the three countries' economic welfare, at the same time, proposes institutional arrangement for economic cooperation in term of cooperative game, not only brings significant promoting function in the fields of investment and trade among countries, but also provides theoretical and technological contributions in constituting regional economic integration of the Northeast Asia.